RICE AND peanut producers should soon receive their second counter-cyclical program payments for the 2003 crop year, according to USDA.
The second partial payment makes available up to 70 percent of the projected counter-cyclical payment. The first partial payment was made available in October 2003.
The second partial payment rate for producers who opted not to take the first partial payment is $51.80 per ton for peanuts and 63 cents per hundredweight for rice.
Producers who opted to take the first partial payment will receive an additional payment based on a rate of $15.40 per ton for peanuts and 5.25 cents per hundredweight for rice.
Producers are eligible for counter-cyclical payments when effective prices are less than the “target prices” specified by the government farm program.
Because the projected market year prices for wheat, corn, grain sorghum, barley, oats, upland cotton, and soybeans are expected to exceed the “target” prices for those crops, producers of those crops will not receive counter-cyclical payments now.
Market prices for wheat, corn, grain sorghum, and upland cotton have increased significantly since last October and if current market forecasts are realized, some repayment of the first partial counter-cyclical payments for these crops would be required, USDA says.
The 2002 FAIR Act allows producers to receive counter-cyclical payments in three installments.